Human Poverty Index

Key takeaways

Human Poverty Index belongs to science; place it in that map before memorising details.
Learn the definition first, then one example that makes the definition concrete.
Connect Human Poverty Index to a quantity you can measure, compute or draw — that is where exam questions come from.
Reproduce the core statement of Human Poverty Index from memory before moving on to harder problems.

Reference excerpt

The Human Poverty Index (HPI) was an indication of the poverty of community in a country, developed by the United Nations to complement the Human Development Index (HDI) and was first reported as part of the Human Development Report in 1997. It is developed by United Nations Development Program which also publishes indexes like HDI. It was considered to better reflect the extent of deprivation in deprived countries compared to the HDI. In 2010, it was supplanted by the UN's Multidimensional Poverty Index. The HPI concentrates on the deprivation in the three essential elements of human life already reflected in the HDI: longevity, knowledge and a decent standard of living. The HPI is derived separately for developing countries (HPI-1) and a group of select high-income OECD countries (HPI-2) to better reflect socio-economic differences and also the widely different measures of deprivation in the two groups.

For developing countries (HPI-1) The Human Development Reports website summarizes this as "A composite index measuring deprivations in the three basic dimensions captured in the human development index—a long and healthy life, knowledge and a decent standard of living." The formula for calculating it is:

HPI-1 = [ 1 3 ( P 1 α + P 2 α + P 3 α ) ] 1 α {\displaystyle \left[{\frac {1}{3}}\left(P_{1}^{\alpha }+P_{2}^{\alpha }+P_{3}^{\alpha }\right)\right]^{\frac {1}{\alpha }}}

For selected high-income OECD countries (HPI-2) The Human Development Reports website summarizes this as "A composite index measuring deprivations in the four basic dimensions captured in the human development index—a long and healthy life, knowledge and a decent standard of living—and also capturing social exclusion." The formula for calculating it is:

HPI-2 = [ 1 4 ( P 1 α + P 2 α + P 3 α + P 4 α ) ] 1 α {\displaystyle \left[{\frac {1}{4}}\left(P_{1}^{\alpha }+P_{2}^{\alpha }+P_{3}^{\alpha }+P_{4}^{\alpha }\right)\right]^{\frac {1}{\alpha }}}

The last report, 2007–2008, only has a ranking for 19 of the 22 countries with the highest Human Development Index. The ranking is as follows (with the country with the lowest amount of poverty at the top):

The countries ranked in the top 22 by HPI that are not on this list are Iceland, New Zealand and Liechtenstein. Not all countries are included in this ranking because data are not always available. The ranks of many countries, especially those at the bottom, could drop considerably if the list included more countries. For information about the component values for countries other than the ones on the list, see source links below. Indicators used are:

Probability at birth of not surviving to age 60 (% of cohort), 2000–2005. Varies from 7.1% for Japan to 11.8% for the USA. This is the indicator that is best known for all countries (including the ones not on the list). The US has specific values associated with disease characteristics of poverty. Worse values start only at position 35 of the HDI, indicating that many countries could climb on an extended list based on this, knocking down lower ranked countries on the above list. People lacking functional literacy skills (% of people scoring in the range called "Level 1" in the International Adult Literacy Survey, age 16–65, 1994–2003). Varies from 7.5% for Sweden to 47.0% for Italy. These figures are higher than most commonly cited illiteracy rates due to the choice of the literacy test. Long-term unemployment (12 months or more, % of labour force), 2005. Varies from 0.4% for the United States to 5.0% for Germany. This indicator has by far the greatest variation, with a value as high as 9.3% at HDI position 37. Population below 50% of median adjusted household disposable income (%), 1994–2002. Varies from 5.4% for Finland to 17% for the US.

Worked examples

Example 1 — a first encounter with Human Poverty Index

Start with the simplest possible case. Write down what Human Poverty Index claims or describes in one sentence, then invent the smallest concrete situation in which that sentence is true. In science, the smallest case is usually a single object, a single equation or a single measurement. Check that every symbol or term in your sentence has a meaning in that case.

Example 2 — changing one variable

Take the situation from Example 1 and change exactly one quantity: double it, halve it, or set it to zero. Predict what should happen to Human Poverty Index before you calculate. Comparing your prediction with the result is the fastest way to find out whether you understand the idea or only the words.

Example 3 — an exam-style question

Typical questions about Human Poverty Index ask you to (a) state it precisely, (b) apply it to given data, and (c) explain a limitation. Practise writing all three answers in under five minutes; the third part is what separates a full-mark answer from an average one.

Applications of Human Poverty Index

In research: Human Poverty Index appears in science research whenever the underlying quantities have to be modelled precisely. Papers usually cite it as a starting assumption and then explore where it breaks down.
In technology and industry: Engineering practice reuses Human Poverty Index in design rules, simulations and safety margins. Knowing the idea lets you read a specification sheet and understand why the numbers look the way they do.
In the classroom: Human Poverty Index is common in secondary-school and first-year university syllabi. It links to neighbouring topics International rankings, Measurements and definitions of poverty, Poverty by country, so understanding it makes those chapters shorter.
In everyday life: Look for Human Poverty Index outside the textbook — in sport, cooking, traffic, electronics or the sky above you. An example you found yourself is remembered far longer than one you were given.

How to study Human Poverty Index in 20 minutes

Read the reference excerpt below once, without taking notes.
Close the page and write down what Human Poverty Index means in your own words.
Compare your version with the excerpt and mark what you missed.
Work through the three examples above with pen and paper.
Explain Human Poverty Index out loud to somebody else — or to Teacher Smith in the lgStudy chat.

Frequently asked questions

What is Human Poverty Index in simple terms?

The Human Poverty Index (HPI) was an indication of the poverty of community in a country, developed by the United Nations to complement the Human Development Index (HDI) and was first reported as part of the Human Development Report in 1997. It is developed by United Nations Development Program whi…

Why does Human Poverty Index matter?

Because it connects several science ideas at once: it gives you a definition you can apply, a quantity you can calculate, and a way to check whether a result is plausible.

How should I study Human Poverty Index?

Read the excerpt, restate it from memory, then work through the examples and applications listed on this page. The five-step study plan above takes about twenty minutes.

What does this page cover?

It gives you a compact reference excerpt plus original lgStudy explanations, examples, applications and study material on Human Poverty Index.